Cross-selling

While both strategies are focused on increasing revenue, there is a difference in the direction of the sale:

• Upselling (Vertical): Persuading the customer to purchase a superior product of the same kind. Example: Changing a guest’s room from a Standard Room ($100) to a Suite ($200).
• Cross-selling (Horizontal): Persuading the customer to buy something in addition to it. Example: The guest retains the Standard Room ($100), but adds Airport Transfer (+$50) and Breakfast (+$20).

In modern-day travel tech, cross-selling is not usually manual. It is fueled by Dynamic Packaging engines. When an airline website asks “Do you need a hotel with your flight?”, it is not checking its own inventory. It is using an API connection to a third-party aggregator (like Expedia or Booking.com). The airline sends the dates of flights to the hotel partner through API in real-time. The system calculates a total price (Flight + Hotel) in milliseconds. Then, the airline makes a commission on the hotel component and does not need to operate even one hotel room.

Effective cross-selling is time-dependent. Travel marketers plot out these offers against the Mood of the Traveler:

• Booking Path (Friction Phase): Keep it Simple. Offer necessary cross-sells such as Baggage or Insurance. Too many options here can cause the user to drop the cart.
• Pre-Arrival (Anticipation Phase): Sent by email, 3 days before the trip. This is the prime time for experiential cross-sells such as Tours, Dining Reservations, or Room Upgrades.
• In-Stay (Captive Phase): The use of the app or Wi-Fi landing page of hotels to sell Room Service or Late Check-out while the guest is physically on the property.